Tax Proposal Still Won't Be Fair To All

March 20, 2006|Bill York Boca Raton

Re last week's Josh Hafenbrack article, "Property tax system ensnares homeowners": This snowbird does not believe there is any fair solution for all with the approach being taken by the state legislators. The only "fair" answer that I'm aware of is the manner by which real estate taxes are levied in Massachusetts.

Every parcel of real estate and structure must be reassessed at 100 percent of fair market value every three years, no exceptions. The cities and towns set their own tax rates, but the total collected cannot exceed the total valuation of property within the city/town. Commercial carries one rate, residential usually carries another but lower rate.

It should be intuitively obvious that businesses carry some 65 percent to 70 percent of the taxes in a municipality. But the state legislators established a formula as to the maximum amounts that businesses can be "assessed" with residential carrying the balance. Without a tax override, the total amount of taxes in a municipality that can be levied is 21/2 percent of market value. And an override requires a vote by the residents of a municipality. If market value goes up, taxes may, too. But if the market falls, so do tax revenues, which may cause problems with a municipality's budget. So they establish reserves when things are booming.

This treats everyone somewhat equally and fairly. For those "up against it," there are provisions for relief.

This system of taxation has been in effect for some 30 years. Prior to this, the system of assessment was very similar to that of Florida today.

What brought about the change? Taxpayer revolt!

When I purchased a house here in 2000, I anticipated an increase but was not prepared for the nearly 50 percent increase I received about a year later. I called the Property Appraiser's Office. Someone dug into the records and responded that the re-evaluation was about $40,000 less than I paid for the house; wasn't that fair? When I told him "no" and how things are done in Massachusetts, he suggested that maybe I should sell the house and return to the Boston area. I might add that my tax bill has just about doubled in 51/2 years.

Eventually there will be, and should be, a taxpayer's revolt in this state!